With reference to the news item appearing in a leading financial daily titled “Omaxe to invest Rs 8k cr to build 10 L low-cost houses”, Omaxe Ltd has clarified to BSE as under:

“We clarified that the initiatives to build Affordable Homes for the masses is being discussed and being pursued with various Government and other concerned agencies and are in the process of examining various schemes and options.

To turn this dream into reality, our Group has already initiated dialogue with the Government of Uttar Pradesh and the Government of Madhya Pradesh sometime in February 2008 and are holding ongoing discussions with them to implement this.

On April 21, 2008, we have also placed a concept plan for consideration before the Hon’ble Minister of State for Urban Housing.

The Company proposes to implement this through its subsidiary National Affordable Housing and Infrastructure Ltd., (NAFEL) and its other Group Companies. The Company has already started identifying and acquiring various tracts of land for this purpose and will be finalizing the design, costs, etc., in due course.

The Company through NAFEL has also initiated an international design competition and the advertisements have been published on May 06, 2008 in the various newspapers.”